RETAIL TRADE – AUSTRALIA

Metcash sinks auto sale proceeds into groceries

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 16-Jun-15

Australian-listed Burson Group will pay $A275m for Metcash’s automotive division, whose brands include Autobarn and Midas. The proceeds of the transaction will be used to bolster Metcash’s balance sheet and invest in its grocery business. Meanwhile, Metcash’s 2014-15 underlying net profit was down 17.4 per cent at $A193m, and it has posted a net loss of $A384.2m. EBIT was 16.7 per cent lower at $A325.1m.

CORPORATES
METCASH LIMITED – ASX MTS, BURSON GROUP LIMITED – ASX BAP, AUTOBARN PTY LTD, MIDAS MUFFLERS, AUTOPRO SERVICES PTY LTD, INDEPENDENT GROCERS OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, DEUTSCHE BANK AG

Shoes of Prey steps away to LA

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Original article by Caitlin Fitzsimmons
The Australian Financial Review – Page: 37 : 16-Jun-15

Online retailer Shoes of Prey will pursue growth in markets such as Asia, Europe and the Middle East, according to co-founder Jodie Fox. However, the US is the Australian company’s primary target for expansion, and as a result it will relocate to Los Angeles. Shoes of Prey’s three co-founders and 20 employees will move to the US, while a number of employees will continue work out of the Sydney office.

CORPORATES
SHOES OF PREY PTY LTD, NORDSTROM INCORPORATED, DAVID JONES LIMITED

Supermarket war delivers welcome boost for advertising

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Original article by Sue Mitchell
The Australian Financial Review – Page: 29 : 15-Jun-15

Grocery wholesaler Metcash has launched a new national marketing campaign with the slogan "It Pays to Shop Independent". Metcash has joined Coles and Woolworths in ramping up its advertising budget amid fierce competition in the supermarket sector. Meanwhile, Metcash is tipped to post a 2014-15 net loss of about $A400m when its financial results are released on 15 June 2015.

CORPORATES
METCASH LIMITED – ASX MTS, COLES SUPERMARKETS AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, INDEPENDENT GROCERS OF AUSTRALIA, CITIGROUP PTY LTD, AUSTRALIAN CONSUMERS’ ASSOCIATION

Myer C-suite poised to slash asset values

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 : 11-Jun-15

The market capitalisation of department store group Myer Holdings is $A795m at present, but the value of its intangible assets exceeds $A930m. Bradley King of Armytage Private suggests that Myer’s new management team could opt for intangible assets and inventory writedowns, while he says a capital raising may also be an option. Recent additions to Myer’s management ranks include new CFO Grant Devonport.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, ARMYTAGE PRIVATE LIMITED, TOLL HOLDINGS LIMITED, VILLAGE ROADSHOW LIMITED – ASX VRL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT

Retailers duck for cover as global chains battle it out

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 10-Jun-15

International fast-fashion retailers H&M and Forever 21 will shortly open stores in Sydney’s Pitt Street Mall. The growing presence of offshore retailers has forced Australian rivals such as Just Jeans and Sussan to relinquish space in the prestigious shopping precinct, and experts warn that local retailers’ sales are likely to be adversely affected by the growing competition in the sector. Forever 21 boasts more than 700 stores worldwide, and it will open about 70 outlets in 2015.

CORPORATES
HENNES OCH MAURITZ AB, FOREVER 21 INCORPORATED, ZARA, JUST JEANS PTY LTD, PREMIER INVESTMENTS LIMITED – ASX PMV, SUSSAN-SUZANNE GRAE, GLUE, TOPSHOP, COTTON ON, SUPRE PTY LTD, SES, VALLEY GIRL FASHIONS PTY LTD, SHARAF RETAIL, AGENT PROVOCATEUR

Metcash is crunched in retail wars

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 5-Jun-15

Australian-listed Metcash has indicated that its financial accounts for 2014-15 will include asset write-downs totalling $A640m. The grocery group has also advised that dividends will be put on hold for 18 months. The revelations prompted a sharp fall in Metcash’s share price, which finished $A0.245 lower at $A1.14 on 4 June 2015. Metcash expects its full-year underlying EBIT to be within its forecast range of $A315m to $A330m.

CORPORATES
METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, McPHERSON’S LIMITED – ASX MCP

Retailer profits under pressure

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 4-Jun-15

UBS and the Australian Food & Grocery Council have produced a report which shows that supermarket groups’ profit margins have increased at the expense of suppliers over the last five years. However, the report concludes that rising competition in the grocery sector is set to shift the balance in favour of suppliers. Woolworths boasts a margin of eight per cent, which is sigificantly higher than the global average.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, KPMG AUSTRALIA PTY LTD

Cold snap heats up store clearance sales

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Original article by Sue Mitchell
The Australian Financial Review – Page: 18 : 3-Jun-15

The mid-season clearance sales of Australian retailers are expected to benefit from a chilly start to winter across much of the country. The cold weather is likely to boost demand for warm clothing, allowing department stores and specialty retailers to reduce their winter inventory. Myer has commenced its clearance sale more than a week ahead of schedule, and aims to sell about $150m worth of stock, while David Jones is offering big discounts in its mid-year sale.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, PORTMANS PTY LTD, SABA, OROTONGROUP LIMITED – ASX ORL, DAVID LAWRENCE, CUE, CREDIT SUISSE (AUSTRALIA) LIMITED, WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, KMART AUSTRALIA LIMITED, TOP RYDE SHOPPING CENTRE

Woolworths on the hunt for new non-executive directors

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 9 : 2-Jun-15

Boardroom renewal is on the agenda at Woolworths, as it seeks a replacement for Ian Macfarlane following his resignation as a non-executive director in March 2015. The retail giant has not ruled out making more than one board appointment. David Thomas of CLSA says Woolworths should select a candidate with retail experience. Meanwhile, Woolworths has rejected suggestions that it is also seeking a successor to CEO Grant O’Brien.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CLSA AUSTRALIA PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, RESERVE BANK OF AUSTRALIA, TESCO PLC, KELLOGG (AUSTRALIA) PTY LTD, JETSTAR AIRLINES PTY LTD, BAIN AND COMPANY

Burson eyes Metcash auto

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 1-Jun-15

Australian-listed Burson Group aims to open four automotive parts stores in Western Australia in coming months, with the first earmarked for the Perth suburb of Malaga. Meanwhile, CEO Darryl Abotomey says the company is a potential buyer of Metcash’s automotive division, but he adds that it would only do so if the transaction made "economic sense". Metcash flagged the sale of the business in May 2015.

CORPORATES
BURSON GROUP LIMITED – ASX BAP, METCASH LIMITED – ASX MTS, AUTOBARN PTY LTD, MIDAS MUFFLERS, AUTOMOTIVE BRANDS GROUP PTY LTD, ULTRA TUNE AUSTRALIA PTY LTD, KMART TYRE AND AUTO, AUTOMOTIVE HOLDINGS GROUP LIMITED – ASX AHG, COVS PARTS PTY LTD, GENUINE PARTS COMPANY, REPCO CORPORATION LIMITED